CONSENSUAL AGREEMENT AND UNDERTAKING (“Agreement”)
Between
THE MARKET PRACTICES COMMITTEE (“Committee”) of
THE LIFE INSURANCE COUNCIL OF SASKATCHEWAN (“Council”)
And Schroeder Consulting Ltd. (the “Licensee”)
The Licensee, through its designated representative Darrell Schroeder (“DR”), acknowledges and agrees that it received the Notice regarding a proposed action pursuant to Section 10-11 of The Insurance Act (the “Act”), and the reasons therefor from Council, dated June 7, 2022.
The Licensee acknowledges and agrees that it is guilty of misconduct by violating the Act, The Insurance Regulations (“the regulations”) and Council Bylaws as follows:
The Act, Section 5-26 Financial security required for insurance intermediaries
(1) Every business and individual that applies for or holds an insurance intermediary’s licence shall meet and maintain the prescribed financial security requirements.
Regulation 5-10 Financial security – insurance intermediaries and adjusters
(1) For the purposes of subsections 5-26(1) and 5-47(1) of the Act: (a) every business that applies for or holds an insurance agent’s license for life, accident and sickness, or life and accident and sickness insurance shall maintain and provide annually proof of a valid policy of errors and omissions insurance that: (i) provides a minimum of: (A) $1,000,000 coverage with respect to any one occurrence and a minimum aggregate limit of $1,000,000 with respect to all occurrences within a year; and (B) $1,000,000 extended coverage for loss resulting from fraudulent or dishonest acts;
Consensual Agreement and Undertaking Schroeder Consulting Ltd.
(ii) covers the insurance activities of the licensee; and (iii) is underwritten by an insurance company licensed to do business in Canada;
Bylaw 3-1 Licences and obligations
(4) A licence imposes on the licensee, and if a business, the designated representative, obligations including but not limited to, the following:
(c) to immediately notify [Council] of: (i) the failure to maintain the prescribed financial security requirements (errors and omissions insurance or the bond), pursuant to sections 5-10 and 5-23 of the regulations;
Bylaw 4-1 Professional misconduct
(1) For the purposes of the Act, the regulations and these bylaws, professional misconduct is a question of fact but includes any matter, conduct or thing, whether or not disgraceful or dishonorable that: (c) is a breach of the Act, the regulations or these bylaws.
The Licensee, through its DR, acknowledges and agrees that: a. The Licensee’s right to make a written submission to, or appear before the Committee at an oral hearing to make representations, as to why this action should not be taken, has been explained and that it fully understands its rights and/or obligations.
b. The Licensee waives its right to make a written submission to the Committee or to appear before the Committee at an oral hearing and chooses to resolve this matter by way of this Agreement and accordingly waives any right of appeal with respect to this action.
c. This Agreement does not preclude Council from pursuing any other investigation and/or sanctions against the Licensee for activities not identified in this Agreement that may be in violation of the Act, the regulations or Council Bylaws.
d. The Licensee has been advised that it is in its best interest to obtain independent legal advice before entering into this Agreement. The Licensee has either:
i. obtained such independent legal advice prior to executing this Agreement; or, ii. has willingly chosen not to obtain such advice prior to executing this Agreement. e. The DR hereby affirms that he has read and understands the terms of this Agreement and that he is signing it voluntarily on behalf of the Licensee.
Consensual Agreement and Undertaking Schroeder Consulting Ltd.
The Licensee, having waived its rights, accepts and undertakes to fulfill the sanctions imposed by the Committee as follows:
1.
2.
Pay the following: a. a fine in the amount of $1,000.00 and b. costs of investigation (5 hours x $110) in the amount of $550.00.
To pay the fine and costs of investigation in the total amount of $1,550.00 within 30 days from the date of this Agreement.
The Committee’s Agreement: Upon fulfillment of the sanctions imposed, the Committee agrees this to be the full and final resolution of the violations of Council’s Bylaws by the Licensee as outlined in this Consensual Agreement and Undertaking
______ O __ r _ ig __ in __ a _ l _ ly _ _ s _ i _ g _ n _ e __ d _ _ b _ y _ _ D __ a _ r _ r _ e _ ll _ _ S _ c _ h _ r _ o __ e _ d _ e __ r __________ ______J_u_n_e__ 7__, _2_0_2__2_____________________ Signature of the DR of the Licensee Date
__D__a_r_r_e_l_l _S_c__h_r_o_e_d__e_r_; _ _P_r_e_s_ _S_c_h__ro__e_d__e_r_ C__o_n__s_u_l_ti_n_g__ L__td__._ Name of the Licensee (please print)
______J_u_n_e__ 7_,_ _2_0_2__2_____________________ Date
____O_r_i_g_i_n_a_l_l_y_ s_i_g_n__e_d__ b__y_ G__r_a_n_t_ _L_a_u__b_e_ _f_o_r_:_____________ ______J_u_n__e_ _1_3_,_ 2__0_2_2____________________ THE MARKET PRACTICES COMMITTEE Date Life Insurance Council of Saskatchewan
Penalties affecting insurance intermediary’s licence
5-39(3) If a penalty imposed against a holder of an insurance intermediary’s licence pursuant to subsection (2) is not paid within 30 days after the holder is served with the written notice of the penalty and the decision of the Superintendent is not appealed, the licence is automatically suspended immediately following the last date for paying the penalty or appealing the decision, whichever is later, and remains suspended until the penalty is paid or the licence expires.